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Dynamic Box Trading Strategy Guide

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Fred Shockness
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0% found this document useful (0 votes)
20 views4 pages

Dynamic Box Trading Strategy Guide

Uploaded by

Fred Shockness
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

THE DYNAMIC BOX PATTERN EXECUTION PLAN

Chart and Strategy Setup


• Chart Setup
o Open a 60 Minute Chart with no indicators
o This strategy is most consistent on Tuesday through Friday
▪ For EST – 3:00 PM – 11:00 PM Tuesday through Friday
▪ For Tokyo – 4:00 AM – 12:00 PM Wednesday through Friday

• Strategy Setup
o Analyze the time listed above and identify only the high and low
within the period
o At 10:30 PM EST draw a horizontal line at the high and low of the
hour
o Analyze the previous day’s action (London and American Session),
was it a strongly bullish or bearish day? This is important as it will
dictate which orders you need to place for the following day’s action
▪ A quick identifier
• Is this evenings range that you identified above higher
than yesterday’s range?
o Bullish
• Is this evenings range lower than yesterday’s range?
o Bearish
▪ Another identifier
• Are there large green bars (Bullish) or large red bars
(Bearish) in the previous session?

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THE DYNAMIC BOX PATTERN EXECUTION PLAN
o If there is no clear direction and/or the previous session was
unchanged then there is no trade
o If there is a 45 pip or more difference between the high and low of
your box then there is no trade for that evening

Strategy Execution
Trade Setup
❑ Make sure to be at your computer at 10:45 PM EST
❑ Open a 60 minute chart on the EURUSD
❑ Identify the high and low between 3PM EST and 11PM EST
❑ Draw a box around price from the high to the low of this time frame
❑ If the box is at or greater than 45 pips then there is no trade for that
evening as volatility is already into the market
❑ If price action of the previous session was bullish then place a buy order at
the high line
❑ If price action of the previous session was bearish then place a sell order at
the low line
❑ Place your stop order at the mid-point of the box
❑ Place your target at 2 times your risk – Static
❑ You have the option of following your stop behind the market – Dynamic
• This is more discretionary
• Our recommendation is to track the large bars in the market and
follow your stop behind those bars

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THE DYNAMIC BOX PATTERN EXECUTION PLAN

Ideal Dynamic Box Pattern Setups

3
THE DYNAMIC BOX PATTERN EXECUTION PLAN

Tips and Tricks


• This system works great in STRONGLY TRENDING markets. If the overall
market is choppy then don’t trade. Keep it simple

• At times it is beneficial to keep a triggered trade alive going into the next
session. Use your best judgement

• You have the option of trailing your stop behind the large price bars that
are working in your favor
• Please note however that you can be stopped out before your 2 to 1
target which will skew your Risk to Reward ratio

• You have the option to trade this more discretionary and manage the trade
if you have the time
• This can be beneficial at times since you can squeeze much more
than 2 to 1 out of these trades
• Test out this strategy on your own. Do your own back-tests so you
know what to expect.

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